Premium suburbs are leading the recovery of the Perth housing market

Premium suburbs are leading the recovery of the Perth housing market

Premium located suburbs are leading the recovery of the Perth property market, says Shane Kempton, Chief Operations Officer for Professionals real estate group in Western Australia and the Northern Territory.

Mack Hall Real Estate

This home in the suburb of Mosman Park is for sale for $17 million through Peter Burns of Mack Hall Real Estate as featured on Luxury List.

Latest REIWA figures show the top nine of ten best performing suburbs in Perth, in terms of price growth, for the March 2018 quarter all shared a median price over $1 million.

“These premium suburbs were either located close to the river or ocean. Applecross was the top performer with a median house price increase of 32.4 per cent over the past year rising to $1.6 million while Dalkeith was ranked number tenth with a median house price of growth of 8.3 per cent pushing its median house price in this suburb to $2.6 million," Kempton said.

“These price growth rates are significant when you consider the overall median house price in Perth fell by 1 per cent over the same period to $510,000.

“Traditionally, it is the top end of the real estate market that leads the recovery in the Perth property market and these figures confirm that Perth is now entering this recovery stage.

Top 10 Suburbs for Annual Change in One-Year Median

Source: REIWA

“Historically, rising prices in the premium suburbs of Perth cause a ripple effect throughout the overall market over a one to two years period.

“Over the coming year, second-tier premium suburbs should perform strongly in the real estate market, as they will be the first areas to benefit from this ripple effect.

This home in the suburb of Mosman Park is for sale for $17 million through Peter Burns of Mack Hall Real Estate as featured on Luxury List.

“We should, therefore, see rising prices in other areas of Perth during the coming two years with the outer suburbs which have been worst affected by oversupply issues, being the last areas to benefit from this upward correction in property prices," he told WILLIAMS MEDIA.

Source: REIWA

“Prices in the top end suburbs of Perth are now rising for a combination of reasons.

“Firstly, the recovery in the resources sector is encouraging people to buy premium real estate which has been very competitively priced since 2016.

“Secondly, this increased buyer activity has lead to a decline in housing stock in these premium areas meaning that buyers have to pay higher prices to secure a home.

This coastal home in City Beach is for sale through Jason Jowett of Realmark Coastal - North Beach, as featured on Luxury List.

“In the vast majority of areas in Perth, property prices are still at rock bottom and buyers should now move quickly to secure a property before the recovery in the market gains further momentum to avoid buyers regret,” he told WILLIAMS MEDIA.